Clients who rely on drawing a regular income from their savings run the risk of running out of money if their investments were to be subject to sharp market dips. The Generation Range aims to manage short-term dips and provide a smoother investment ride. The Range aims to mitigate against the impact of market falls through a focus on ‘short-term risk management’.
‘Active short-term risk management’ forms a part of every stage of your portfolio construction process, to limit the risks that a poor sequence of returns can permanently dent your capital. This means that the managers can act quickly to guard against losses in periods of market stress. The diversified nature of the Range is also aimed at mitigating the risks of capital erosion.
The Generation Range is run by a dedicated full time team with vast experience in managing equities, bonds and ‘multi-asset’ funds, as well as other types of investments. The team seeks to pick the best fund managers from across the world and among every asset class, to construct diversified portfolios that enable clients to draw income, while at the same time, offering potential for capital growth.
The Generation Range’s aim of delivering income and growing clients’ money looks to provide a solution for finding a balance between ‘yield’ and ‘capital growth’. This is different from most other investments, where the choice is, essentially, income OR growth. At the same time, the Generation Range seeks to protect against the effects of inflation, as the range of portfolios targets returns above the Consumer Price Index (CPI) of +3%, +4% or +5% over the medium term, depending on the Portfolio (based on a client’s ‘attitude to risk’).
Each of the Generation Range (i.e. Ranges 3, 4 and 5) invests primarily in funds run by a variety of managers, across a wide array of asset classes. This facilitates exposure to multiple regions, investment sectors and fund-management styles. All portfolios are monitored continuously with an eye on the interaction between the funds held, to ensure a suitable blend is maintained – in keeping with your attitude to risk.